StartupTalky

Tag: ✍️ Opinions

  • What Is the Potential of AI and Tech Startups to Transform the STEM Industry?

    This article has been contributed by Deepti Sharma, Director, ThinkerPlace.

    Artificial intelligence has fundamentally changed how we do our jobs. Our reliance on AI has made life easier and more ingrained in our culture as a whole.

    We used to rely solely on Google to provide us with information, but now we ask AI to do our work for us. The question that we must all ask is: How will it affect the next generation?

    In the STEM sector, entrepreneurs in AI and technology are quickly changing how we study and approach STEM subjects. STEM education is a crucial part of education systems worldwide as it prepares students for a rapidly evolving workforce.

    Artificial Intelligence’s impact on STEM learning and education, in general, has been up for debate and discussion for quite a long time now.

    Science, technology, engineering, and mathematics are the four key academic areas that are highlighted. Historically, lectures, books, and experiments have been used to teach these subjects. STEM education is evolving, though, with the rise of AI and digital businesses. Innovative tools and methods are being used by AI and tech businesses to improve STEM education and make it more open to all students.

    To improve instruction and learning quality, several AI technologies are applied in STEM education. Because of its complexity, it is currently difficult for AI technology to make STEM learning simpler for students. To accomplish high-quality STEM learning, one must carefully take into account these complicated elements because there are many important concepts involved.

    AI technologies can help students develop crucial skills like cognitive thinking, problem-solving skills, creativity, and more. Many articles and statistics report good efficiency and algorithm accuracy when AI is used in STEM learning.

    Statistics on How AI Will Transform the STEM Industry

    Now let’s take a look at how AI will transform the entire STEM industry with some statistics:

    1. The International Federation of Robotics estimates that the number of industrial robots installed worldwide will reach around 3.1 million units by 2025, driven in part by advancements in AI and machine learning.
    2. GitHub’s “2022 State of the Octoverse” report states that the use of machine learning and AI on the platform grew by 200% in 2022, indicating a rising trend of AI adoption in software development.
    3. A study by PricewaterhouseCoopers (PwC) suggests that AI technologies can contribute up to $15.7 trillion to the global economy by 2030, with the largest impact expected in the manufacturing and engineering sectors.

    Potential of AI in the STEM Industry

    • AI offers enormous potential for automating routine, repetitive jobs, freeing scientists, engineers, and researchers to concentrate more on innovative work. Another way AI and tech entrepreneurs are changing the STEM sector is by developing new tools and technology that are fundamentally altering how research and development are carried out. To analyze enormous datasets and spot patterns and trends that would be challenging for people to spot on their own, AI-powered techniques are now being deployed. This is causing discoveries in industries like healthcare, where artificial intelligence is being used to create novel cures and treatments for illnesses.
    • In sectors like manufacturing, where robots can complete jobs quickly and accurately, AI-powered automation also increases productivity.
    • AI assists in analyzing and gaining useful insights from enormous datasets as a result of the growing amount of data being generated. As a result, predictions and decisions can be made with more accuracy. Machine learning algorithms can spot patterns, correlations, and trends in data that humans might overlook.
    • In addition to revolutionizing the STEM sector, AI and IT entrepreneurs are also generating new career prospects. There is a rising demand for individuals with the skills necessary to create and manage these systems as more businesses adopt AI and other cutting-edge technologies. As a result, there are more positions available in disciplines like data science, machine learning, and artificial intelligence.
    • Personalized Learning: AI can revolutionize STEM education by providing personalized learning experiences. Intelligent tutoring systems can adapt to individual students’ needs, pacing, and learning styles, offering tailored instruction and feedback. This personalized approach enhances students’ understanding and engagement with STEM subjects.
    • AI and technology startups are also supporting emerging technologies such as Virtual Reality (VR) and Augmented Reality (AR) that make STEM learning more immersive and engaging. With VR and AR, students can experience complex concepts and scenarios that would otherwise be an impossible task. For instance, students can explore the human body, the solar system, or even the intricacies of a molecular structure in a virtual environment. This approach to learning makes it easier for students to comprehend complex concepts, leading to better learning outcomes. “Even at ThinkerPlace, we are bringing in innovative AI-driven toys for kids, through which they get a rich and fun experience of STEM learning,” says Deepti Sharma.
    • AI and technology are also working towards gender equality and bridging the gaps in STEM education. Historically, STEM subjects have been a male-dominated field, and the industry has struggled to attract women and people from diverse backgrounds. However, AI and technology startups are leveraging their innovative approaches to make STEM education more inclusive.

    Conclusion

    Overall, AI has the potential to revolutionize the STEM industry by automating tasks, personalizing learning, enhancing data analysis, advancing research capabilities, transforming healthcare, improving engineering processes, and addressing complex challenges. It empowers scientists, engineers, and researchers to push the boundaries of knowledge and innovation. The potential of AI to improve STEM is seamless. It can help the industry go beyond and excel in innovations that no one had ever thought of.

    How AI Is Transforming HR Department?
    In 2022, 2.3 million jobs will be created, while 1.8 million jobs will be eliminated by AI worldwide. Here is how AI is transforming HR.
    StartupTalkyDevashish Shrivastava

  • How to Get a Virtual Address for an LLC

    This article has been contributed by Jo Meunier, Editor, Alliance Virtual Offices.

    Getting ready to set up an LLC? You’re in good company. There are approximately 21.6 million LLCs in the United States, and it’s one of the most common types of business structure.

    That’s because LLCs are generally easy to form and require fewer formalities compared with setting up a corporation.

    Most importantly, an LLC offers limited liability for owners. Unlike a sole proprietorship, an LLC business is considered a separate legal entity and is liable for its own debts. That means your home and personal assets should be protected if your LLC runs into financial trouble.

    What Addresses Can You Use for an LLC?
    A More Cost-Efficient Solution Is to Use a Virtual Address
    How to Get a Virtual Address for Your LLC

    What Addresses Can You Use for an LLC?

    One thing you’ll notice about an LLC structure is that it requires a recognized address.

    Technically, you can use your home address for your LLC. However, most LLC members prefer not to use their home addresses due to security and privacy concerns.

    Few people are happy to have their home address and personal contact details published on the web; it exposes your home and phone number to scams and junk mail.

    Add to that, information published online is ‘sticky’. It tends to remain visible long after your details have been changed or removed. Even if you switch to an office address further down the line, your home address may still appear on web directories or outdated pages.

    Plus, as a business owner, using your home address looks a little unprofessional.

    A traditional solution is to rent a physical office space.

    However, many entrepreneurs and small businesses operate remotely, especially since the pandemic, and carry out their work primarily from home or from job sites. An office lease is therefore unnecessary, and for the sake of an address, it makes the process of setting up an LLC incredibly expensive. Even a small office space can cost hundreds of dollars per month.

    A More Cost-Efficient Solution Is to Use a Virtual Address

    A virtual address, also known as a virtual office, provides a business address for your company. You can use a virtual address for LLC documentation as well as applying for licenses and permits, a business bank account, financial credit, and more.

    Given that virtual offices typically start from as little as $50 per month, it’s far more cost-efficient than a traditional office lease.

    It also solves the home privacy problem. Your virtual address will become your publicized business and mailing address, which means your home address remains private and safely off any marketing lists.

    However, be sure your virtual address is located at a physical office building. You cannot use a PO Box for your LLC. It must be a physical location with a street address for your business to be compliant.

    How can you tell the difference?

    A reputable virtual address provider will provide detailed information and images of the location. If you’re unsure, check out the street address on Google Maps and look up the virtual office provider using review sites such as Trustpilot.

    Better still, if you’re local, go and see the center for yourself.

    Pro Tip: While you’re checking out the address online, consider that your clients and any future partners, investors, or new hires, will probably do the same. What are your first impressions? Is it a professional place where you would happily locate your business? Perception is important and can go a long way toward building trust and credibility for your business.

    One recommended virtual address provider is Alliance Virtual Offices.

    All their virtual office locations provide a recognized business address at a physical office with onsite meeting space, a professional staff, and secure mail processing and forwarding services.

    How to Get a Virtual Address for Your LLC

    Now that you know what type of address to look out for, here are 3 simple steps to gain a virtual address for your LLC:

    1. Choose a virtual office location: Select a virtual office location that is suitable for your LLC and customize your options. For example, you may wish to add mail forwarding or monthly meeting room access. At checkout, you will need to submit and notarize a CMRA (commercial mail receiving agency) form that authorizes your virtual office to receive mail on your behalf. If you buy a virtual address through Alliance, they provide an easy online notary service that’s included with your setup.
    2. Submit LLC documentation: Once you have completed the setup of your virtual office, submit your LLC documentation using your new virtual address on your Articles of Organization. If you are updating existing LLC documentation, use IRS form 8822-B to update your business address.
    3. Assign a registered agent. Every LLC needs a registered agent. This is a third party with the authority to receive service of process notices, and other official documents on behalf of your business. In most cases, states require that you have a physical address in addition to a registered agent to set up an LLC.

    Pro Tip: Each state may use different regulations regarding LLC setup. We advise checking with your state, or with an appropriate tax advisor or lawyer, to help you best understand your options to ensure that your chosen address can be used for LLC purposes in your state.

    That’s it! Now you have a virtual address for your LLC, it’s time to update your marketing documentation, business and tax records with your new address as soon as possible. This will help legally separate your business from your personal assets and keep your home address private, too.

    Remember, most virtual offices provide professional meeting rooms and office space. Why not book a workspace for an hour or two and spend a little time working in your new ‘office’?

    8 Key Benefits of Virtual Offices Every Business Owner Should Know
    Virtual offices are offices that have a physcal adress but the team works remotely. here are some of the benefits of virtual office that will
    StartupTalkyAnagha S

  • Tax Planning for Businesses

    This article has been contributed by Niraj Hutheesing, Founder and Director, Cygnet Infotech.

    Tax planning is an essential aspect of running a business in India, especially with the recent changes in tax laws and regulations. In 2023, businesses need to be proactive and strategic in their approach to tax planning to ensure compliance, minimize tax liability, and maximize profits.

    The IT landscape globally has been evolving to address the challenges in tax planning. The tax operations across the organizations are transforming from being a compliance function to influencing the business structure and decisions. The emerging technologies have the potential to improve operating efficiency and uncover insights that can drive fact-based decision-making for tax optimization and change the value tax brings to the company’s bottom line.

    Proper documentation and record-keeping are crucial for tax planning. Businesses should maintain accurate records of all transactions, invoices, and receipts, as they may be required to provide these as evidence in case of an audit. Also, the ITR & GST returns are integrated to ensure that all financial transactions are accounted for, reported, and taxed appropriately.

    Traditionally, businesses handle tax documentation and filings manually, leading to fragmented records and a lack of a single source of information. This increases the likelihood of compliance issues such as mismatch between the data disclosed in financial statements and tax returns, missed ITC and tax optimization opportunities, and security and authentication challenges. Furthermore, managing multiple tax registrations and inconsistent data formats between internal systems, compliance platforms, and government portals adds to the hassle.

    Integrated tax solutions are helping corporate tax teams to cope with increased demands for data and transparency from regulators. Historically, taxpayers had been reacting to the changes brought by the tax administration, but now, aided by the technologies, corporate tax teams have started taking a more hands-on approach to use data for predictive and prescriptive analysis, tax modeling, and decision-making to optimize tax across the breadth of their operations and speed up planning, reporting and compliance processes.

    TaxTech can help businesses identify potential areas for savings, such as indirect taxes, which are often overlooked. Adopting technology solutions, such as automated invoicing and tax compliance software, can result in accurate capture and recording of all eligible input tax credits (ITC) transactions. This optimizes ITC utilization and streamlines tax processes, minimizes exposure to interest, penalties, and litigations through verifying vendor invoices, taking the rightful credits, and ensuring compliance along with the ability to block payments from non-compliant vendors and safeguard cashflows. Real-time visibility and detailed reporting for auditing purposes provide added benefits. Integrating technology in tax compliance improves financial performance and enhances efficiency in tax planning and processes.

    The future of tax planning lies in the use of technology such as artificial intelligence and machine learning. These technologies can help companies analyze large amounts of data quickly and accurately, allowing them to make more informed decisions about their taxes. Additionally, AI can be used for indirect tax compliance, helping companies stay on top of changing regulations in different jurisdictions around the world.

    We see the shift from standalone to connected tax systems with technologies like RPA, blockchain, integration, and hyper-automation using the data warehousing approach that is eventually the future of tax. It is only a matter of time before we see these emerging technologies start supporting the tax function in making strategic decisions. In tomorrow’s tax world, analytics would be indispensable, the digital twin will complement manpower in the tax function, and artificial intelligence/machine learning and blockchain would become the new normal.

    As we look toward the future of tax planning in GST, it is clear that tax technology will play a critical role in this transformation. The automation of GST returns filing, real-time invoicing and tracking, improved compliance, valuable data insights, and integration with other business systems, are all hallmarks of the positive impact that tax technology will have on the Indian tax landscape.

    It is the right time for SMEs and MSMEs to embrace digitalization. As we are moving towards increasingly connected tax systems, the government’s push for real-time data sharing in the form of e-invoicing will push MSMEs to comply. By reducing the turnover threshold, SMEs will need to streamline their accounting and reporting systems, with cloud-based invoicing solutions that can be particularly helpful for the tax process digitalization journey & GST compliance.

    By embracing this change, and leveraging the full potential of tax technology, the future of tax planning under GST is bright, and we are eager to be at the forefront of this exciting new era.

    Top 7 Tax Saving Investments under Section 80C
    As we all know it’s tax season and we all look for ways to save tax. So, here we have rounded up Top Tax Saving investments under 80C.
    StartupTalkyAbinaya Arangarajan

  • Insurance for Small Businesses: Overcoming Challenges and Ensuring Adequate Coverage

    This article has been contributed by Chetan Paliwal, Vice President of Insurance Products, Pazcare.

    Creating sufficient insurance solutions and implementing them with the necessary penetration poses significant challenges for insurance companies and their distribution channel partners, such as agents and brokers, when insuring small businesses.

    The key challenge lies in the diverse risks that small businesses face, combined with their limited awareness of them, which often makes them ineligible for insurance coverage. Despite efforts by insurers and distribution partners to increase awareness, low premiums and limited remuneration for brokers and agents can make it financially unviable for them. This results in a classic scenario where demand exists but supply-side constraints create a mismatch, leaving small businesses largely uninsured or inadequately insured.

    Below are the major risks that need to be insured in order to protect small businesses and ensure the continuity of their operations.

    Fire Incident
    Burglary and Theft Incidents
    Death or Disability of Employee
    Death or Disability of the Owner

    Fire Incident

    A Fire incident on a small business has a multi-fold impact as they can lose most of their capital, which is in the form of stocks, machinery, fittings, and other immovable assets.

    • To protect this, fire and allied perils insurance coverage provides coverage for loss due to fire, flood, other natural disasters, terrorism, and other similar perils.
    • The cost of covering all the above risks for a shop owner or retailer is approximately 0.1% of the value of the assets on an annual basis.
    • The regulator is also pushing for reforms to make insurance more accessible. Thus, they have also asked insurance companies to launch standardized coverages like Bharat Sookshma Udyam Suraksha, which covers businesses with total assets of up to ₹5 crore, and Bharat Laghu Udyam Suraksha, which covers businesses with total assets valued between ₹5 and ₹50 crore.

    Burglary and Theft Incidents

    Burglary and theft incidents are also very rampant in small businesses, and that can have a financial impact if the raw material stock or finished goods stock is lost.

    • To protect against this burglary and theft, insurance coverage provides coverage for losses due to these risks.
    • The cost of covering all the above risks for a shop owner or retailer is approximately 0.2% of the value of the assets on an annual basis.

    How SaaS Can Be the Future of the Insurance Industry?
    Insurance is a $5,838.43 billion industry. This is how SaaS is transforming the insurance industry in 2023.
    StartupTalkyHarshit Verma

    Death or Disability of Employee

    Death or disability of the employee due to an accident while working on the premises.

    • Worker’s Compensation Insurance: This policy is for employers when they provide compensation to their employees in case of accidents that happen while they are on the job. It covers employees in the case of diseases, bodily injury, disability, or death caused due to accidents in the course of employment and helps them get the care they need. By doing this, it enables employers to meet the requirements of the Workmen’s Compensation Act and protection from lawsuits.
      The cost of covering all the above risks for a shop owner or retailer is approx. 0.05% of the value of the overall payroll of employees on an annual basis.
    • Group Health Insurance: This is a health insurance plan that covers the employees of an organization under one policy, where the premium is borne by the employer. The coverage can be taken for their dependents, such as spouses, children, and parents.
      The cost of covering all the above risks is approx. 1%–2% of the value of the overall limit required on an annual basis.

    Death or Disability of the Owner

    The owner or proprietor typically takes business loans on their personal liability. In the event of the death or disability of the owner or proprietor due to any injury or ailment, the personal liability would have to be paid by the dependents.

    • Term life insurance for the promoter or owner would help in the above scenarios where the value of the term insurance can be kept as outstanding loan value so that in case of any eventuality, their dependents can square off the loan with that insurance claim so that business continuity can be ascertained to the extent possible.
      The cost of covering all the above risks for an owner or proprietor is approx. 0.1%–0.0.2% of the value of the overall limit required on an annual basis.

    Thus, with the above-mentioned various insurance solutions, small businesses can also be adequately covered and prevent losing their capital, thereby ensuring business continuity.

  • How to Drive Traffic and Conversions Using a Link in Bio

    This article has been contributed by Kate Melnik, Customer Support and Marketing Specialist, Shor.by.

    A social media presence on many platforms is a must for any brand, creator, or SaaS business. More than 90% of marketers prefer Instagram, TikTok, Twitter, and other platforms to sell products and services. Although social media is convenient for growing an audience, converting and managing leads from various sources is still challenging. How do we merge these cross-platform audiences and convert them into paying clients? The solution to drive traffic and conversions is in your bio link!

    In this article, you will find out how a link in your bio can help you drive traffic and conversions.

    Link in Bio Explained
    How Does a Link in the Bio Drive Traffic?
    Your Bio Link is the Key to Fast Conversions
    How To Drive Traffic and Conversions Using a Link in Bio
    1. Call your audience to action
    2. Create evergreen offers and store them in your bio
    3. Provide all social links and ways to contact you
    4. Overdeliver
    5. Track your bio link’s statistics

    Social media platforms regulate the use of third-party URLs to protect their users from spam and malicious links. For example, Instagram blocks access to suspicious websites and has no posting option for links in captions and comments. The safest URLs to use in your accounts’ bio are:

    • Links to your website with a secure domain
    • YouTube, Twitter, Pinterest, Facebook, or Medium links
    • WhatsApp contact links
    • URLs generated by link-in-bio services

    You can fill your profile’s Website field with only one item. Services like Linktree, Shor, or Linkfire help create an all-in-one page to place more content, calls to action (CTA), and detailed information about you or your brand. These link-in-bio solutions also drive cross-platform traffic and get you more conversions.

    The link in the bio is a perfect bridge for merging visitors from many social media platforms into one traffic stream. With an all-in-one solution, you can turn your Instagram visitors into your YouTube subscribers and vice versa. A page in your bio that includes all your socials makes you leverage each visitor more and allows them to select the best way to stay in touch with you. Moreover, a link in the bio is an effective traffic driver to your website! Use it for getting people to a special offer or as a place to subscribe to your waitlist.

    PRO TIP: One underestimated source of traffic is your email signature! Perceive it as your short bio, and use the same link you have in your socials to get visitors even from your formal conversations.

    Conversion is successful when a person has done what you wanted them to. It may be buying your product, subscribing to a newsletter, or joining a community. Locate your lead magnet in your account’s bio link page to remove all extra steps between a person visiting your Instagram and leaving their email by subscribing to your outstanding offer.

    SaaS businesses also benefit from link-in-bio services by using them as landing pages to show their services and best offers. Platforms, where you can craft a page with multiple links, texts, and images, are an alternative to services like Clickbank and their spammy-looking domains and URLs.

    1. Call your audience to action

    A call to action (CTA) makes a visitor understand what to do in exchange for receiving value. For a link in the bio, two types of CTA are important:

    • External: encourages your audience to click your link in the bio.
    • Internal: prompts a visitor to complete an action (buy, subscribe, visit a page, etc.).

    Add a call to action (CTA) and remind everyone everywhere to click your link in the bio. Use various forms, such as images and videos on your pages, for a more engaging CTA.

    CTA Examples
    CTA Examples

    2. Create evergreen offers and store them in your bio

    Evergreen content and offers are the base for never-ending conversions! Storing links to them in your bio is the fastest discovery way for your potential leads and clients. An example of such promotion is a free e-book with tutorials or helpful niche-related information a visitor receives in exchange for their email. Create an eye-catchy button for your evergreen offer by using images, highlighting, and an engaging title. When appropriate, you can use CTA to mention that you have something special on your bio link page.

    While one person prefers email communication, another may connect via WhatsApp only. You want to convert them both into your clients, so list all places to contact you! Links to all social media accounts show your expertise and invite visitors to discover you on other platforms.

    PRO TIP: If you monetize via services like Patreon, add buttons with links to donate right from your bio!

    4. Overdeliver

    When you drive traffic and conversions from your link in the bio, add an unexpected value for every visitor! The goal is to create an impression that a person clicked your bio link at the ‘right time’ and benefitted from it! An ‘overdeliver’ strategy: create special promo codes for your products that are only accessible through your bio link page.

    5. Track your bio link’s statistics

    What gets measured gets improved! Analytics of your link in the bio display what social media platform is preferable and what content requires updates. Additionally, statistics on clicks show what offers work best and how many conversions are driven by them! Most link-in-bio services also provide Google Analytics or socials pixels integrations to help you identify your audience’s key characteristics. For example, Google Analytics provides demographic and geographic information about page visitors.

    Track Your Bio Link’s Statistics
    Track Your Bio Link’s Statistics

    Top 10 Website Traffic Analysis Tools to Use in 2023
    Keeping track of your website traffic is an integral part of SEO. Here we have rounded up top 10 tools to help you check accurate website traffic.
    StartupTalkyDamini Bhandary

    Conclusion

    A link in an Instagram, TikTok, or YouTube bio is crucial for driving traffic and conversions for all businesses. Check that your strategy includes a strong CTA as motivation to click on your link, various ways to reach you on different social platforms, evergreen offers, an unexpected value for each visitor, and attention to statistics on clicks and content performance to get more leads and make conversions using a link in your bio.

  • Budgeting and Cash Flow Management for Small Businesses

    This article has been contributed by Mr. Ratish Pandey, Business Coach, Executive Coach, and Founder, Ethique Advisory.

    Imagine a small boat navigating a vast and unpredictable ocean. Without a clear plan and sense of direction, the boat in a choppy ocean would be tossed and turned by the waves, putting its passengers and journey at risk.

    In many ways, small businesses navigate turbulent waters when it comes to their financial journey, as they must steer the complex and dynamic marketplace while ensuring their business’s stability and growth.

    Over two-thirds of small businesses have admitted to encountering financial challenges, with 43% citing the management of operational expenses as the biggest challenge.

    According to a study, budgeting and cash flow management are significant pain points for most small businesses, since 86% state that they would need additional funds if revenues were lost for as little as two months.

    Mastering the process of Budgeting and Cash Flow Management can help entrepreneurs and small business owners go a long way in achieving their desired business outcomes.

    Below, we’ll discuss the best strategies you can incorporate into your business to be successful.

    Budgeting for Small Businesses
    Understanding Cash Flow Management
    Improving a Business’s Cash Flow

    Budgeting for Small Businesses

    The first part of managing a small business’s finances is developing a budget. There are several steps for business owners to track and monitor their budget and, subsequently, the health of their companies, and those are:

    • Gather Insights: The first step to creating the budget. It involves gathering data relating to the financial and operating metrics of the company. It includes collecting the income statement, balance sheet, and statement of cash flows from the historical financial records, looking at historical sales projections, and understanding the industry benchmarks. Entrepreneurs can then gauge essential metrics, such as customer acquisition costs, inventory turnover, and the lifetime value of a customer. This data is necessary for creating future revenue projections and making informed decisions on undertaking new projects.  
    • Segregate Costs: Small Business Owners need to separate the fixed and variable costs in a business to understand the firm’s financial flexibility. Fixed or Overhead costs remain constant, such as rent and employee salaries, while variable costs fluctuate based on the business activity, such as material costs and marketing expenses. Small businesses need to minimize fixed costs to a minimum and remain financially flexible in case of adverse economic uncertainty or a fall in demand.
    • Zero-Budgeting: Some firms consider this approach extreme, but it can work wonders. The Zero-based approach starts with a clean slate, allocating every rupee based on a company’s current priority, ensuring that the resources are being used effectively. The Entrepreneur challenges all historical data and creates a budget based on the current future projections for sales & fixed and variable expenses. Zero-based budgeting approach helps draft a realistic budget for the present.

    Understanding Cash Flow Management

    While budgeting ensures that the organization’s financial health remains healthy over the long run, cash flow management techniques help a company understand its short-term needs. Tracking the cash inflows and outflows helps maintain enough liquidity for the organization to meet its short-term obligations like salaries, rent, and interest payments. Furthermore, cash flow management practices in an organization enable businesses to develop accurate budgets and financial projects while increasing financial flexibility.

    Top 87 Best Low Investment Business Ideas With High Profits
    Are you looking for business ideas with low investment? Take a look at these high-profit business ideas that require low investment.
    StartupTalkyShubham Kumar

    Improving a Business’s Cash Flow

    There are a few ways for businesses to improve their cash flow:

    1. Maintain Cash Reserves – A study by JPMorgan revealed that the median small business holds a cash reserve buffer of just 27 days, forcing hurried borrowing or shutters down in case of an unexpected contingency. Instead, companies need cash reserves for at least six to nine months to weather unexpected challenges, a slowdown in operations, etc.
    2. Manage High-Interest Debt and Duration – High-Interest debt is the most sizeable cash flow risk for small businesses. It is reported that only 48% of small businesses meet their financing needs, while 29% fail on account of running out of money. One needs to consider increasing the borrowing duration while opting for the lowest interest rates, which should free up the company’s cash flows.
    3. Improve Collection Efficiency – Small businesses are often challenged with tracking, invoicing, and collecting payments from their clients, making cash flow management difficult. According to a study by TSI small companies, on average write off 1.5% of their total receivables as bad debts. 93% of companies battle late customer payments. Thus, it is vital for small businesses to focus on improving their collections’ efficiency by sending invoices timely and aggressively following up on late payments.
    4. Extend Duration on Payments – Another way for small businesses to improve their cash flow management is by negotiating payment terms with suppliers and vendors to extend the duration of the payments to smooth out cash flows.
    5. Track Expenditures – Small Businesses should track expenses to identify areas where costs can be better managed, thereby improving cash flow management.
    6. Improved Forecasting – Businesses can improve their cash flow management by creating precise financial projections and comparing them with actual results.
    7. Revamping Revenues – A business can reduce risk to its cash flows by adding multiple business streams rather than relying on a single customer or market. The approach will help enhance the overall stability and resilience of the company.

    Conclusion

    It’s no secret that over two-thirds of small businesses face financial challenges, with budgeting and cash flow management being the most significant pain points. However, businesses need to understand that by employing the right tools and strategies, they can mitigate the challenges, making their journey smoother and more successful.

    Regular monitoring and tracking of in-house cash flows and staying abreast of developments in the market are critical to improving cash flow management and making informed decisions. With sound strategies and practices in place, small business owners can successfully navigate the complexities of the marketplace and reach their financial goals.

  • Tax Strategies for Salaried Employees and HR Strategists

    This article has been contributed by Mr. Sayeed Anjum, Co-founder and CTO, greytHR.

    Believe it or not, tax planning remains an area where HR strategists could craft a loyal employee-employer relationship. Tax planning could also enable individuals to accumulate additional savings, which in turn could be used to meet various financial goals.

    While tax planning is assumed to be a core HR function, new-age CHROs have automated payroll systems that make tax planning look like a thing of the past. Moreover, tax planning is mostly relegated to crafting attractive offer letters for new hires or a plan that employees have to share at the start of a new fiscal year. But, despite the automation, HR heads in India have their hands full. First, when it comes to providing an understanding of new budget announcements, and second, during the investment documentation cycle during the January-March period of a financial year.

    Salaried employees, mostly freshers, usually scrutinize their offer letters to understand the salary breakdown, such as house-rent allowances, leave-travel encashment, tax slabs, and other benefits. But knowing a few tax principles helps employees and employers make rational decisions. Understanding the finances and asking appropriate questions is vital to avoiding unpleasant surprises. With that in mind, let us take a quick look at how employees and employers could leverage the many tax strategies.

    Budget 2023: Old vs New
    National Pension Scheme (NPS)
    Smart HR Strategist

    Budget 2023: Old vs New

    Employees can either opt for an old regime of taxation where investments under various headers can be claimed as a concession. Under the new regime, the overall tax rate is lower but one cannot claim concessions. The 2023 Budget announced recently has increased the tax-free ceiling to INR 7 lakhs. Among the salient features, the rebate under section 87A has been hiked from INR 5 lakh to INR 7 lakh making it tax-free. When it comes to leave encashment, the maximum exemption limit of Rs 25 lakhs is increased from Rs 3 lakhs in the 2023 budget, which has not increased since the introduction of the policy by labour law. The proposal to increase to Rs 25 lakh indicates enormous savings for taxpayers. The government has recognized the fact that the amount of the exemption has become quite unrealistic in terms of tax relief.

    While the surcharge has been reduced from 37 percent to 25 percent while the standard deduction has been marginally increased. The tax on employees opting to encash accrued leave has also been revised. To many employees, opting for the old or new policy is a baffling question. However, one must understand the schemes for claiming concessions prior to opting for a regime. While the announcements motivate the salaried class with additional savings, the onus is upon the CHROs and individuals to understand the importance of these concessions and accordingly plan for tax. Sections such as 80C, 80D, and 80EE, provide avenues to plan for finances. Let us take a quick look at each of these.

    80C: This section of India’s Income Tax Act provides individuals with exemptions from various expenses and investments made during a calendar year. The maximum ceiling of investments allowed under this section is Rs 1.5 lakhs every year. The section allows investments made under headers such as EPF (employee provident fund), PPF (public provident fund), ELSS (equity-linked savings schemes), principal repayment on a housing loan, and other savings schemes such as NABARD bonds, long-term bank fixed deposits, SCSS senior citizens savings schemes, National Savings Certificates (NSC), SSY Sukanya Samriddhi Yojana, etc. Donations made to certain trusts, institutions, and funds are also recognized as an exemption to tax under this section.

    80D: This section of the Income Tax Act offers deductions for money spent on health insurance and maintaining the health of your near and dear ones, including spouse, children, and dependent parents. With the rising cost of insurance in a post-Covid world, this is a significant exemption for planning taxes and personal finances.

    80EE: The less discussed exemption among the salaried class was introduced for the first time in 2013-14. Under this scheme, individuals owning a single property can claim a concession on the interest part of a housing loan. Section 80EE is capped at a limit of Rs 50,000 every financial year.

    National Pension Scheme (NPS)

    NPS is a retirement savings scheme with lesser loading and admin charges. This instrument is not fully exempted from tax as of now. But the government has been making amendments to the provisions of the scheme.

    Besides these important exemptions, individuals are also exempted from housing rent, leave travel allowances (LTA), the employee contribution to Provident Fund, and a standard deduction to meet conveyance allowance and medical allowance. Some exemptions for the salaried class are also made available under schemes such as a pension, gratuity, donations to political parties, meal coupons, company-leased cars, etc.

    For employees, reducing tax outgo could help save money while for HR strategists, schemes to reduce the tax outgo are likely to pass on the savings to their employees. A higher tax outgo reduces disposable income which may impact financial commitments. To those already struggling to make ends meet, paying lesser taxes could provide financial relief.  Such savings could be handy during retirement or planning for unforeseen events.

    Smart HR Strategist

    To HR strategists, the tax calculation is often perceived as an automated process, although it has a significant impact on the employee-employer relationship. A well-designed compensation package can help attract and retain top talent, and taxes play a significant role in determining the take-home pay for employees. Tax policy can make or break an attractive compensation package which in turn increases the likelihood of an employee joining the organization.

    Smart HR heads also realize that financial investment is not what a person shops for during a specific time of the year. For instance, an employee could buy medical insurance for his spouse; invest in a house; take a loan; invest in his child’s education; have ailing parents, etc. New financial commitments could be made at any time of the year, and the current documentation policy may expose your employee to a higher tax outgo which could be a financial challenge in the short term. Inadequate planning for personal events could also strain an employee’s financial health and productivity, thereby impacting the organization.

    Organizations educate employees on tax exemptions and policies through internal team meetings and by addressing personalized questions Smarter organizations build self-help dashboards with a summary of the exemptions in simple language. HR tech such as reminders, alerts, and calculators also help educate employees on their personal finances while meeting compliance norms.

    Smart organizations realize their relationship with the employee is not limited to an offer letter made on a specific date but a journey of handholding and education. Accurate tax computation is crucial in meeting the financial goals of the employees and their organization.

    Conclusion

    Understanding and implementing effective tax strategies is crucial for both salaried employees and HR strategists. By adhering to tax laws, people can optimize their tax savings and make the most of their income. One should be well-informed in order to ensure efficient financial management and maximize tax benefits.

  • AI Is Helping Businesses Reduce Their Overhead Costs—Here’s How!

    This article has been contributed by Animesh Samuel, Co-founder and CEO, E42.

    Amid the looming global recession of 2023, companies are exploring ways to cut overhead costs and significantly improve efficiency. One of the most promising strategies is to adopt artificial intelligence (AI) technologies to streamline business operations, thereby boosting productivity. Amidst all the noise around products and solutions claiming to be AI these days, it’s critical for businesses to choose the right one that fits their specific needs and addresses their current challenges. This requires careful analysis of the authenticity of the solution and consideration of the costs, benefits, and potential impact on their operations. By selecting the right AI technology, companies can not only reduce costs but also gain a competitive edge and drive long-term growth.

    Intelligent automation, or Cognitive Process Automation (CPA), harnesses the capabilities of AI to address complex issues in a more intuitive and human-like way, revolutionizing the way businesses operate. With intelligent automation, businesses can reduce costs associated with the manual handling of complex processes, provide actionable insights through data analysis, and make informed decisions to optimize operations. From HR management, customer support, and finance to other key functions, enterprise AI can streamline and improve the performance of business processes across verticals and industries.

    Additionally, AI-powered custom intelligence reports offer a deeper understanding of business performance by leveraging previously untapped data sources. Let’s delve a little deeper into the key role played by AI in improving business efficiency and reducing overhead costs.

    Artificial Intelligence Market Size
    Artificial Intelligence Market Size

    How AI is Improving Business Operations by Initiating Overhead Cost Reduction

    AI-powered solutions can automate a wide spectrum of routine and repetitive tasks, freeing up employees to focus on more strategic tasks. The implementation of AI in business processes also provides valuable insights into business operations, enabling organizations to identify areas for improvement and optimize their processes.

    Some of the ways AI is improving business operations and initiating overhead cost reduction are:

    Automation of Routine Tasks
    Streamlined Supply Chain Operations
    Improved Decision Making
    Customer Service Optimization
    Exploring Innovation With AI

    Automation of Routine Tasks

    AI can automate a variety of time-consuming tasks across functions, such as data entry, invoicing, financial reporting and analysis, employee and customer onboarding, digital KYC activities, and much more – freeing up employees to focus on higher-value work. AI-powered intelligent virtual assistants can perform tasks faster and with higher accuracy in comparison to any human. For instance, AI-based tools can analyze equipment usage data to predict when maintenance is needed, reducing the number of unplanned downtime events and the associated costs. This invariably helps enterprises reduce overhead costs by increasing efficiency, reducing labor costs, improving accuracy, enhancing productivity, and achieving scalability.

    Streamlined Supply Chain Operations

    AI can analyze historical sales data and market trends to accurately predict demand for products. This can help enterprises reduce the risk of both overstocking and stockouts, reducing the costs associated with carrying excess inventory. With the availability of powerful data on AI-based dashboards, business owners can get real-time visibility into supply chain operations, allowing them to quickly identify and resolve bottlenecks and inefficiencies. The generation of transportation data also helps identify the most cost-effective routes for shipments, reducing transportation costs and improving delivery times. Additionally, AI can also help organizations evaluate and manage suppliers, ensuring that they receive the best quality products at the lowest possible cost, resulting in reduced lead times, lower transportation costs, and improved customer satisfaction.

    Improved Decision Making

    AI-powered solutions provide real-time and actionable insights based on vast amounts of data, enabling executives to make data-driven decisions. This happens through the analysis of large amounts of data to identify patterns that can provide meaningful insights, helping enterprises enhance decision-making. Overall, the implementation of AI systems in organizations is a natural progression towards better, faster decisions that result in reduced overhead costs, improved efficiency, and an edge over the competition.

    Customer Service Optimization

    Enterprise AI solutions can handle routine customer inquiries around the clock at an unmatched speed and scale, improving the overall customer experience. AI-powered customer service solutions drastically reduce the need for large call-center teams deployed for query resolutions, automatically translating cost savings. Moreover, the implementation of powerful AI tools and predictive analytics helps businesses analyze patterns in data and preempt situations that can lead to an influx of customer queries and the need for resolution on a war footing.

    Exploring Innovation With AI

    Businesses today face tremendous pressure to enhance their operational efficiency and explore innovative technologies to sustain profitability and maintain a competitive edge in a rapidly changing economic landscape. Automation technologies, based on AI have the potential to significantly improve the efficiency and performance of businesses, making for a rather lucrative option for those looking to optimize their operations.

    In addition to improving operational efficiency, AI also has the potential to enhance revenue generation by enabling businesses to better understand their customers, predict future demand, and improve their supply chain operations. With AI, businesses can leverage data-driven insights to make smarter decisions, reducing waste and maximizing the return on their investments.

    Conclusion

    In conclusion, AI is the technology that has the potential to transform enterprise operations in more ways than one, and enterprises are only beginning to reap the many benefits that it has to offer—from reducing costs and improving operational efficiency to driving innovation. For businesses looking to optimize their operations, missing out on AI and enterprise automation can pose a risk to survival!

  • Fintech NBFCs and Market Shifts: How Fintech NBFCs Should Adapt to Market Trends

    This article has been contributed by Kunal Mehta, Founder and Director, Arthan Finance.

    The fintech industry has been growing and developing rapidly with the introduction of digitization in various aspects of the system. The traditional format of banking has evolved at a great speed, especially since the pandemic. NBFCs operating in the fintech sector have seen significant growth in recent years. With technology driving growth in almost all sectors, there is a greater need for a smoother financial system interface. Fintech NBFCs, or non-banking financial companies, have enhanced the financial experience of customers by offering innovative, technology-driven solutions. There has been a major shift towards digital and cashless transactions, creating greater and better opportunities for NBFCs to expand their businesses and portfolios.

    However, with technology constantly upgrading and shifts in consumer behavior and demands on the market, the NBFCs must continuously adapt to stay ahead of the curve. Along with digital solutions, NBFCs also need to embrace technologically-driven solutions for the best customer experience.

    Since the pandemic, market shifts and wavering demands have put some pressure on the fintech companies to thoroughly analyze the futuristic demand. In order to stay relevant, NBFCs should be able to understand the nature of the demands of their customers and their futuristic needs. Some of the changing market trends that will shape the fintech industry in the coming years are:

    Constant Integration of Digitalization
    Amplifying Security
    Expansion into New Geographic Markets and Product Lines
    Blockchain Technology
    AI-driven Data Solutions
    Leveraging IoT Technology
    Hyper Automation
    MetaVerse Fintech

    Constant Integration of Digitalization

    Although fintech companies have been established through technology, NBFCs must continue to invest in building and adopting new technology and digital infrastructure that will help streamline internal processes, enhance customer experience and collect data that will help them understand the future needs of their customers.

    Amplifying Security

    In recent years, there have been a lot of fraudulent cases relating to online and digital payments. This has made people wary of using technology for their day-to-day transactions. There is a dire need within the fintech sector to strengthen their security and protect the trust of their customers. With digital payments becoming the new norm, designing a high-security transaction system will help NBFCs boost growth and expand their customer base.

    Expansion into New Geographic Markets and Product Lines

    One of the biggest assets of the fintech sector is easy accessibility. The consumer can conduct all financial transactions at the tip of their fingers. However, in order to make their services available and known, NBFCs need to venture into new geographical markets and market their products locally. This expansion will help to increase the reach of NBFCs and create new business opportunities. Additionally, expanding their product portfolio will help NBFCs reach out to a bigger market and create more opportunities for business.

    Blockchain Technology

    Blockchain technology is increasingly being adopted by the fintech sector for its potential to improve transparency, security, and efficiency in financial transactions. It enables the creation of secure and decentralized ledger systems that can facilitate a range of applications including digital payments, smart contracts, and decentralized finance (DeFi). Blockchain technology can help improve financial inclusion by enabling faster, cheaper, and more secure transactions for individuals and businesses, and can also reduce fraud and errors in financial transactions. Additionally, it has the potential to streamline various financial processes, from remittances to insurance claims, by eliminating intermediaries and increasing transparency. NBFCs need to gradually experiment with integrating this technology to understand its pros and cons on the user experience and business.

    AI-driven Data Solutions

    One of the biggest boons within technology has been AI-driven data collection, segregation, and solution. NBFCs should look into amalgamating AI in their systems and allowing AI to understand customer behavior. This will help fintech companies to provide customized products and services to their customers, benefitting both, the company and the consumers and driving major value creation.

    How is AI transforming the Finance Industry?
    Artificial intelligence has transformed every industry from healthcare to education. Can it transform finance and does it have a competitive advantage?
    StartupTalkyKavita Thakur

    Leveraging IoT Technology

    IoT Technology has been effectively changing the dynamics of the financial landscape. IoT has excellent data analytics capabilities that can help segregate millions of data points in seconds. Additionally, it can swiftly detect hackers, attacks on the system, and malware being uploaded. This can help NBFCs detect fraudulent activities and increase the security of their system and protect the data of their customers. IoT can also help mitigate risks for secured and unsecured loans while improving consumer engagement.

    Hyper Automation

    With new technology within AI and deep learning being designed and introduced, process automation would be the next fintech market trend to be adopted. From deploying chatbots and introducing deep learning to understand customer behavior, Hyper Automation will reduce paperwork, increase efficiency, enhance decision-making, and make the entire experience seamless for the customer.

    MetaVerse Fintech

    The biggest revolutionary technology, the MetaVerse, is one of the most innovative and crucial technological development. With proper development, MetaVerse will become a universe of its own, drawing customer engagement and driving value creation through various services. Fintech companies must look out for MetaVerse Technology as it is fast evolving and still new in its phases. With fintech MetaVerse, customers will be able to conduct their banking and financial activities and transactions in a virtual reality format. This, in a way, will be building a full circle.

    With technology making it easier for customers to conduct transactions on their phones introducing MetaVerse where customers can enter virtual reality and experience traditional banking services. This will be revolutionary for NBFCs as it will allow them to provide a personal touch and experience to their customers and help retain them. It will also open up new opportunities and avenues for customer engagement and build loyalty and trust.

    Conclusion

    Fintech companies and NBFCs have been leveraging technology to improve the customer experience, making it faster and more convenient for users. By adopting new technology, expanding their reach, and building avenues to retain customers, NBFCs have a huge opportunity for growth and development in the coming years. Fintech companies need to stay focused on creating business strategies that will help them integrate new technology in a seamless manner, which will enhance the consumer experience.

  • How to Save More on Taxes: Understanding Tax-Saving Instruments Under Section 80C, 80D, and Home Loan Interest

    This article has been contributed by Shreya Sharma, CEO and Founder, Rest The Case.

    Since the finance minister has announced the budget for the year 2023-2024, everyone is curious to know the various ways through which they can save their tax money by fitting their income under Rs. 7 lakhs. The government has decreased the tax liability for those who earn an income of fewer than Rs 7 lakhs per annum. As per the new norm, whatever tax is charged up to an income of Rs 7 lakhs will be refunded back to the people. Let’s learn more about tax-saving instruments in this article.

    As a norm, every Indian has to pay a particular amount of tax to the Indian government as part of their contribution. In India, the Income Tax Act of 1961 governs and regulates all the tax implications. The tax imposed depends on the income slab of one’s earnings. However, you can reduce your tax liability under various sections of the Income Tax Act of 1961.

    Section 80C
    1.Life Insurance Premiums
    2.Investments in Public Provident Fund (PPF)
    3.Equity-Linked Savings Scheme (ELSS)
    4.National Pension Scheme (NPS)
    5.Unit Linked Insurance Plans (ULIP)
    6.Employee Provident Fund
    Section 80D
    1.Health Insurance Premium
    2.Preventive Health Check-up
    3.Additional Deduction for Dependents
    Section 80EEE

    Section 80C

    Section 80C of the Income Tax Act allows individuals to claim deductions on their taxable income by investing in certain specified instruments. The maximum deduction limit under this section is Rs. 1.5 lakh for individuals and Hindu Undivided Families (HUFs) for the financial year 2022–23. Taxes under Section 80C are only imposed on individual taxpayers and Hindu Undivided Families. Businesses other than corporations, partnerships, and partnerships are not eligible to claim Section 80C tax exemptions. The various tax-saving options under Section 80C of the Income Tax Act are as follows:

    1. Life Insurance Premiums

    One can save tax by paying the premiums for life insurance for yourself, your spouse, or your dependent children.

    2. Investments in Public Provident Fund (PPF)

    PPFs are a popular investment scheme that saves tax and is considered a safe investment option since they are issued by the government.

    3. Equity-Linked Savings Scheme (ELSS)

    An open-ended mutual fund scheme in which at least 80% of assets are invested in stocks. ELSS funds’ returns vary according to market performance.

    4. National Pension Scheme (NPS)

    Designed to provide post-retirement pension benefits to working professionals and unorganized sector earners, any Indian between the ages of 18 and 60 can open an account under the NPS scheme.

    5. Unit Linked Insurance Plans (ULIP)

    In unit-linked insurance plans, investors get insurance and investments in one package. In addition to providing life insurance, ULIPs also help investors build wealth.

    6. Employee Provident Fund

    An Employee Provident Fund is a retirement savings plan that is backed by the Indian government. It is available to all salaried employees. Under this scheme, a certain percentage of your basic salary and Dearness Allowance must be contributed.

    You can invest in one or more of these instruments to claim deductions under Section 80C. It is important to note that the maximum deduction limit of Rs. 1.5 lakh includes all investments made under this section. Therefore, it is important to plan your investments and make the most of the available tax benefits.

    Everything You Need to Know About TDS on Virtual Digital Assets
    The Indian government has announced that they will charge a 1% tax on virtual digital assets like crypto and NFT but who has to pay this tax? Find out
    StartupTalkyHeena Singh

    Section 80D

    As per Section 80D of the Income Tax Act, 1961, tax deductions are provided for the expenses incurred towards medical insurance and health check-ups. The deduction is available to individuals and Hindu Undivided Families (HUFs). Below is the enclosed list of the deductions available under Section 80D:

    1. Health Insurance Premium

    A deduction can be claimed for the premiums paid on health insurance policies for yourself, your spouse, your children, and your dependent parents up to Rs. 25,000. In case the premium is paid for senior citizens, the maximum deduction limit is Rs. 50,000.

    2. Preventive Health Check-up

    There is a maximum deduction of Rs. 5,000 available for expenses incurred on preventive health check-ups for yourself, your spouse, your children, and your dependent parents.

    3. Additional Deduction for Dependents

    An additional deduction of Rs. 50,000 can be claimed if you pay the health insurance premium for your parents, who are seniors, therefore, the total deduction available for health insurance premiums is Rs. 1 lakh (Rs. 50,000 under Section 80D and Rs. 50,000 under Section 80DDB).

    It is significant to note that the total deduction under Section 80D cannot exceed the actual amount paid towards health insurance premiums and preventive health check-ups. Therefore, all the records of the expenses and the relevant receipts should be maintained to claim the deductions under Section 80D.

    Section 80EEE

    This section is a blessing for all the people who are planning to purchase their dream house, as it provides an additional deduction for first-time homebuyers. Available to all first-time buyers who wish to entail a loan for the purchase of a residential property, it is one of the best tax-saving instruments, provided there should not be any other residential property in their name on the date of sanction of the loan.

    It allows a maximum deduction of Rs. 1.5 lakh and is available for the interest paid on the home loan during the financial year. The deduction is available for a maximum of 7 years or until the interest on the loan is fully paid, whichever is earlier. Further, it states that the loan should be taken from a financial institution, such as a bank or a housing finance company, and the value of the residential property purchased with the loan should not exceed Rs. 50 lakh.

    Conclusion

    A variety of tax saving modes have been provided by the Indian Government, which not only reduces our liabilities but also encourages us to invest in various plans and schemes. A tax savings plan and a thoughtful investment strategy are essential for enjoying good returns on your investments and saving taxes.